April 22 (Bloomberg) -- Cocoa futures climbed to the highest price in eight weeks in New York on signs of increasing demand for chocolate. Coffee also rose.
Nestle SA, the world’s largest food company and maker of KitKat candy bars, and U.S. chocolate maker Hershey Co. today reported first-quarter revenue that topped analyst estimates. Chocolate sales are doing “relatively well,” said Adam Klopfenstein, a senior market strategist at Lind-Waldock, a broker in Chicago.
Cocoa is “hanging in very resiliently in the face of an otherwise bearish day” for commodities, Klopfenstein said. “Cocoa is bucking the trend slightly because you see increased demand.”
Cocoa for July delivery rose $52, or 1.7 percent, to $3,139 a metric ton on ICE Futures U.S. in New York. Earlier, the price reached $3,146, the highest level for a most-active contract since Feb. 22. The price has climbed 5.1 percent this week.
North American cocoa-bean processing rose 16 percent in the first quarter from a year earlier, the National Confectioners Association said last week.
“Those grinding numbers are still underlying support in the market,” Klopfenstein said.
On London’s Liffe exchange, cocoa for May delivery rose 25 pounds, or 1.1 percent, to 2,264 pounds ($3,482) a ton.
Arabica-coffee futures for July delivery rose 0.2 cent, or 0.2 percent, to $1.3145 a pound. The commodity has gained 12 percent in the past year.
Robusta coffee for July delivery climbed $8, or 0.6 percent, to $1,331 a ton in London.
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